Source of Funding
To strengthen third-party funding structure, the Bank will strengthen its customer base by offering more competitive Deposit interest rates. Additionally, the Bank continues to motivate customers to boost their transactions with the Bank. And the Bank will continue to forge collaborations with several local banks to strengthen its Rupiah funding.
In its collaboration with international banks, the Bank always reviews existing loan syndication and continues to seek ways of growing loan growth.
The Bank attempts to boost its marketing efforts to increase its pool of borrowing customers. One way of attracting the borrowers is by offering competitive loan interest rates.
Providing loans to existing debtors will also be pursued, especially to those who have demonstrated excellent financial performance and good business prospects.
To control and sustain low Gross NPL Ratio, the Bank maximizes the function and task of Loan Security and Monitoring Division that is responsible to oversee troubled debtors. Additionally they need to monitor financial performances of debtors under “Current” and “Special Mention” category, while paying extra attention to non-performing debtors, and assist them to improve its financial performance.
In the area of Accounting, the Bank improves the coordination and monitoring for the implementation of PSAK 50 & 55 (2006 Revision) and other PSAK which will implemented in 2012 across all related Divisions. This conducted through close consultations with external auditors, other relevant consultants, and Bank Indonesia about the implementation of such regulation.
The Bank’s Risk Management System will continue to be improved by updating the risk profile parameter with Bank Indonesia’s Regulation. The risk profile parameter is done through an application that helps the Bank assess the risk profile and quality of risk management implementation. The objective is to create a risk evaluation process that is more accurate, effective and efficient that meets the relevant regulations.
Additionally, constant updates on the risk management regulations are always heeded, while carefully studying its impact on the Bank’s capital requirement to provide an early snapshot on it.
To create a reliable risk-based audit system, the Bank will review its Risk-Based Audit Program and improve audit implementation quality, coordinate with external auditors to review SKAI performance and deal with any relevant issues. The Bank will also create a Risk Register on the audit findings before tackling them with the relevant Departments.
Compliance and Legal Matters
To create a compliance culture within the Bank, a strategy is planned to formulate, review, and evaluate effectiveness, the adequacy and adherence against existing policy, and ensure systems and procedures are in place as per requirements. Those that are not yet in place will be provided.
Meanwhile the Bank will create and deliver reports as schedule, and minimilize errors in reports. Compliance Forums with the relevant Department/Unit and Compliance Officer Meeting from every section and branch will be conducted on a regular basis.
The Bank conducts regular coaching and training to improve staff knowledge and skills, and monitor all the training activities. This strategy is also meant to transfer any work-related knowledge and skillsets from the foreign (expatriate) staff to the local staff.
To support efficiency and effectiveness in information technology, the Bank will renovate its Data Center and Disaster Recovery Site and develop a Customer Relationship Management (CRM) System and Business Process Management System.